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San Benito County’s only hospital files for bankruptcy

On May 22, the San Benito Health Care District voted to approve the filing of Chapter 9 bankruptcy. The hospital will remain open.
Jonathan Linden
/
KAZU News
On May 22, the San Benito Health Care District voted to approve the filing of Chapter 9 bankruptcy. The hospital will remain open.

The San Benito Health Care District, which oversees Hazel Hawkins Memorial hospital, voted to file Chapter 9 bankruptcy on May 22. The hospital is located in the city of Hollister, and is San Benito County's only hospital.

San Benito County Supervisor Kollin Kosmicki
Jonathan Linden
/
KAZU News
San Benito County Supervisor Kollin Kosmicki

“We don't want our residents having to be potentially facing life saving health matters and having to drive long distances to get health care … especially emergency care,” said San Benito County Supervisor Kollin Kosmicki.

Hazel Hawkins first declared a fiscal emergency last November. Hospital spokesperson Marcus Young says over 70% of its patients use Medicare or Medi-Cal — California’s Medicaid program. That means less money coming in.

“And we want to care for everyone in the community. It's just we're saying the reality of our situation is those are our patients. This is what happens,” Young said.

The path forward will most likely mean a partnership with an outside group or an acquisition. Because the hospital is publicly owned, voters would need to approve a buyout.

Young says bankruptcy helps move those conversations forward and keeps the doors open.

“We're talking with several different parties right now,” Young said. “We're anticipating that more will come to fruition over the next coming weeks.”

Until then, the hospital is still in business. And Young says they hope to keep it that way.

Jonathan Linden was a reporter at 90.3 KAZU in Seaside, Calif. He served at the station from Oct. 2022 to July 2023.